The article reformulates the traditional input-output model (both in quantities and prices) to include the supply and demand of natural resources. The proposed model allows nature to absorb industrial outputs, unlike the so-called factor's model which only allows non-produced inputs to flow from nature to the industry and from industrial production towards intermediate and final demand. Nevertheless, it is shown that absorption of industrial production leads to a model not compatible with the widespread input-output model. The proposed model is also extended to random supply of natural resources but fixed demand. This formulation allows for correlation relationships between quantities and prices in line with mainstream economic theory.
